3 Tech Trends Central to the Growth of Digital Solutions in Europe in 2025 he strategic shifts among Europe's Mobile Network Operators will have a ripple effect across the continent's tech industry. Here's what you should know.

Digital products and services continue to offer unparalleled growth opportunities, all driven by tech industry pioneers. Yet even the most innovative venture or disruptive new service will fall short if it can't get into the hands of its target user base.

The tech industry can't perform without reliable mobile connectivity, deep rates of smartphone penetration, and reliable, secure services. Meanwhile, Mobile Network Operators (MNO) look to tech innovators to unlock new product lines or excel on key market differentiators like customer service.

The intertwined nature of the two industries has seen MNOs become integral to the fabric of growth in Europe. For instance, in 2024 the UK's Competition and Markets Authority approved a huge £16.5bn merger between Vodafone and Three on the basis that they sign binding commitments to improve local 5G infrastructure. Meanwhile, EE has launched a standalone 5G network in 15 UK cities that is set to boost the adoption of AI products and meet demand for connected home setups in areas including AR and video streaming.

As we look ahead, the strategic decisions and shifting priorities of European MNOs will have a major ripple effect across the wider tech industry given their starring role.

Here's why new cybersecurity protections, strategic collaboration, and European-wide infrastructure changes are three trends central to the growth and adoption of digital solutions in 2025.

1. Employing AI becomes essential in the face of rising fraud

Cybersecurity is on the rise across the board, but the challenge is especially pressing for MNOs.

Mobile handsets have replaced desktops as the preferred way to access bank accounts or emails and conduct financial transactions thanks to the added security of facial recognition.

Yet this makes mobiles an irresistible target for fraudsters. Meanwhile, attempts to deceive the public via their phones can employ a sophisticated blend of social engineering and technology to convince users to give up sensitive information. For instance, deepfakes that leverage AI are now concerningly accurate, convincing people that they're communicating with a friend or loved one in need of cash.

In 2024 the rates of fraud hit new heights. Within this, Spain has the highest spam rate in Europe while the UK has the highest proportion of fraud calls in Europe. Phone fraud, spam and the emerging use of AI-driven deepfake voice scams are escalating threats to the voice channel, affecting every phone user across every major market,

In light of this, MNOs that can provide improved protections and security measures against these sophisticated attacks that target users' sensitive information will have a significant edge.

Here, customers will increasingly look to MNOs who can provide additional protection and security from SMS scams and advanced voice fraud.

Implementing robust fraud detection and prevention mechanisms has long been a goal for European MNOs. However, this is no longer just about protecting their own revenue and showing excellent customer service. As of 2024, the European Union's AI Act, which came into effect on 1 August 2024 across 27 member states, enforces a comprehensive regulatory framework for AI applications in the EU with far-reaching implications for MNOs.

In response to these pressing threats, EE launched a new subscription service, Scam Guard, that proactively monitors whether a user's data has been listed on the dark web among a host of other protections. In 2025 we're likely to see the MNOs who offer advanced protections against cyberfraud win out on customer satisfaction and loyalty.

2. Strategic partnerships drive new growth

Another major trend we're expecting to see in 2024 is MNOs across Europe adopting strategic partnerships as a way to drive growth. While these key players in the industry have access to huge customer bases already, the core business is often saturated leaving few differentiators between providers on areas like data plans.

Here, partnering with tech companies offers a way for MNOs to add new products to their service offering that either boost overall revenue with existing customers or access new customers. One example of this in action can be found with Sim Local's 2024 partnerships with EE and Lyca Mobile to help these MNOs branch out into eSims without needing to develop the technology from scratch. In return, these operators have a way to reach a huge new customer base of international travelers who look to Sim Local for connectivity solutions when abroad. [Editor's note: The author is Head of Commercial at Sim Local.]

We're also seeing a rise in collaborative projects between leading MNOs to progress in adjacent industries. Deutsche Telekom, Orange, Telefónica, and Vodafone have joined forces to launch a standalone venture, Utiq, that brings new, 'cookieless' digital advertising solutions to a wider customer base. This European ad tech venture is preparing for its Series-C in 2025 to develop the offering further and reach new markets for these participating MNOs.

MNOs are also looking to partnerships as a way to improve overall network services for specific clients or use cases. In the UK, Belfast City Council worked with BT to create an optimized 5G network that reduced latency on a milestone AR/VR experience to boost earning and development opportunities for sectors including education, healthcare, retail, transport, tourism, manufacturing, construction and sport.

3. Infrastructure disparities within Europe set to change

MNOs in Europe are also set to refine their strategies in line with the specific opportunities that vary from country to country.

For instance, the Greek regulator the Hellenic Telecommunications & Post Commission (EETT) recently commissioned a report with Tefficient that reveals some big disparities across Europe's mobile users from ARPU to revenue per gigabyte.

While the primary focus of the benchmark was on Greece, the report's insights provide perspectives for the opportunities in the other Eurozone countries of Austria, Belgium, Croatia, France, Germany, Ireland, Italy, Lithuania, the Netherlands, Slovenia, and Spain. Here, the revenue potential for MNOs was found to vary greatly between countries, with factors such as the presence of mobile-only operators making a large difference in the potential revenue per user.

MNOs are also leading the delivery of fundamental public services that also require seamless connectivity. The UK Home Office announced this December that the BT Group and its mobile subsidiary EE have been awarded a major £1.85bn contract to deliver network communications for the entire emergency sector, including police, ambulance and fire services.

In 2025 we're expecting to see a push to iron out these disparities with policy markers and MNOs working to deliver more consistency across Europe in areas like 5G availability. The EU largely views mobile connectivity as something core to overall economic growth given the deep penetration of digital services that rely on user connectivity. This means that a level playing field across Europe is a priority in 2025.

MNOs at the heart of digital growth

Mobile Network Operators in Europe are key stakeholders in the overall progress of economies in Europe. From fighting fraud and cybercrime to boosting businesses through strategic partnerships or improved network connectivity, MNOs will play a leading role.

As such, a new era of collaboration and dealmaking between MNOs and public authorities is set to be the tone in 2025 and beyond.